The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Daiwa Office Investment's current ratio for the quarter that ended in Nov. 2023 was 0.83.
Daiwa Office Investment has a current ratio of 0.83. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Daiwa Office Investment has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Daiwa Office Investment's Current Ratio or its related term are showing as below:
TSE:8976'
s Current Ratio Range Over the Past 10 Years
Min: 0.62 Med: 0.86 Max: 1.65
Current: 0.83
During the past 13 years, Daiwa Office Investment's highest Current Ratio was 1.65. The lowest was 0.62. And the median was 0.86.
TSE:8976's Current Ratio is ranked worse than 57.12% of 716
companies
in the REITs industry
Industry Median: 1.025
vs TSE:8976: 0.83
Daiwa Office Investment Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Daiwa Office Investment's Current Ratio
For the REIT - Office subindustry, Daiwa Office Investment's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Daiwa Office Investment's Current Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Daiwa Office Investment's Current Ratio distribution charts can be found below:
* The bar in red indicates where Daiwa Office Investment's Current Ratio falls into.
Daiwa Office Investment Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Daiwa Office Investment's Current Ratio for the fiscal year that ended in Nov. 2022 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Daiwa Office Investment (TSE:8976) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Daiwa Office Investment Current Ratio Related Terms
Thank you for viewing the detailed overview of Daiwa Office Investment's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Daiwa Office Investment (TSE:8976) Business Description
Daiwa Office Investment Corp is a real estate investment trust focused on acquiring, managing, and leasing office properties located in the Five Central Wards of Tokyo. The vast majority of the company's real estate portfolio is composed of office buildings fairly evenly distributed between Tokyo's Five Central Wards in terms of total value. Daiwa derives nearly all of its income in the form of rental revenue from leasing its properties. The firm has a varied tenant base from a number of industries, including the entertainment, retail, insurance, and food and beverage companies.
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